1031 - finding replacemant properties

[Christian Nwigwe]

Hi fam - doing a 1031, need to identify a value-add multi fam/ apartment in 30 days. Any tips for finding off market value add deals?

[Sepehr K.]

You either need a great network of brokers who will give you pocket listings, or you need to start driving around your target market and writing down properties that fit your criteria then try to find the owners contact info. 

[Alex Olson]

@Christian Nwigwe I recommend looking for 1031 exchange focused real estate brokers. They can help you. They understand the deadlines, the stress, the pocket listings, the power of having a 1031 exchange and what that means to sellers. If you are looking in Kansas City, I am sure I can point you in the right direction. 

[Rick Pozos]

You should start looking for replacement property before you even put your sale property on the market. Now you are going to be in a big rush and will most likely end up buying a bad deal or one that you never really wanted to begin with.

1031 takes plenty of planning.

[Scott E.]

In reality, it's probably too late. My crystal ball says you're going to need to just pay the tax bill on this one.

6 months ago you should have been calling every broker in town, door knocking, sending mailers, connecting with wholesalers. Basically letting the whole world know exactly what you were looking for and the sense of urgency around the situation.

[Ran Iarovich]

I would find the best broker team nearby. A team of agents will constantly communicate off-market deals between themselves and be able to share them with you if you communicate your goals with them. 

[Elena Orselli]

I have a few deals we have now if you want to roll in your 1031 as an LP in a large MF - over 100 units. It is an option if you do not find something. Happy to connect further with you on how it works. I have a 1031 I am doing but we had to go from a 11 unit MF to a SF STR in Florida. It is hard to pinpoint a property in 30 days. BUT an option is to roll that money into a large MF as an LP.

[Ryan Beatty]

Hey Christian, I help lots of investors exchange into assisted living communities. Happy to chat, it's not uncommon that folks lean on me when they can't find replacement properties 

[Joe Vesey]

Quote from @Scott E.:

In reality, it's probably too late. My crystal ball says you're going to need to just pay the tax bill on this one.

6 months ago you should have been calling every broker in town, door knocking, sending mailers, connecting with wholesalers. Basically letting the whole world know exactly what you were looking for and the sense of urgency around the situation.

 If you are not able to find a suitable replacement property - there are some passive investment solutions (ie Delaware Statutory Trusts) available.  Glad to have a conversation to see if they may be a fit for your situation and goals.  

[Joe Vesey]

Quote from @Elena Orselli:

I have a few deals we have now if you want to roll in your 1031 as an LP in a large MF - over 100 units. It is an option if you do not find something. Happy to connect further with you on how it works. I have a 1031 I am doing but we had to go from a 11 unit MF to a SF STR in Florida. It is hard to pinpoint a property in 30 days. BUT an option is to roll that money into a large MF as an LP.

 Buying as an LP would not be considered like kind in regards to an exchange.  

[Alex Olson]

@Scott E. I do not think it is too late. We help investors often with 1 or 2 days left to ID. Buying a solid property in a great area where you break even or heaven forbid lose a bit is way better than paying taxes on a property and taking yourself out of the market. If you run the calculations at break even and factor in tax benefits, your annual income is better off than paying taxes. This is worst case and we can often find great cash flowing properties for most budgets in an area like KC.